London - based integrated exploration and production company Sterling Energy Plc (SEY.L), Wednesday, posted a wider pre-tax loss for the first six-month period ended June 30, on a 24% decline in group turnover.
Pre-tax loss widened to US$ 46.5 million from US$ 31.5 million in 2008.
The company said, the loss for the period widened to US$ 35.2 million or US$ 1.52 per share from US$ 21.9 million or US$ 1.33 per share last year.
First-half group turnover declined 24% to US$ 43.3 million from US$ 56.7 million in 2008.
The company also said deferred tax based on origination and reversal of timing differences increased to US$ 11.3 million from US$ 9.7 million in 2008.
Average Group first-half production fell 13% to 4,563 boe/d from 5,242 boe/d a year ago, 5% below the average production rate for fiscal 2008. USA accounted for 77% of production compared with 82% in last year.
Revenues from North America decreased to US$ 27.1 million from US$ 45.8 million, while revenues from Africa and the Middle East increased to US$ 16.3 million from US$ 10.9 million in 2008.
Total production, on entitlement basis, declined to 4,563 barrels of oil equivalent per day or boe/d from 5,242 boe/d last year.
USA production was 3,535 boe/d compared with 4,265 boe/d, while Chinguetti production was 1,028 boe/d compared with 977 boe/d in 2008, the company said.
Average realised oil price, including hedges, was US$ 61.72 per barrel of oil or bbl compared with US$ 95.84/bbl a year ago.
Average realised gas price, inclusive of hedge costs, was US$ 6.17 per thousand cubic feet of gas or mcf compared with US$ 8.84/mcf last year.
Expenses of impairment of oil and gas assets increased to US$ 62.1 million from US$ 30.4 million in 2008.
The company said that loss on disposal of oil and gas assets was US$ 0.7 million compared with profit of US$ 1.4 million last year.
The company said it remains committed to the ongoing disposal of the USA business and the sales process initiated in 2008. Gas prices reached record levels in mid-2008 of almost US$ 13/mcf, fell dramatically in the second half of 2008 and have continued to fall in 2009.
During the period, Sterling reduced the book value of its USA oil and gas assets to reflect both the fall in USA gas prices and field performance. There has recently been some renewed interest from buyers in the USA division, albeit at an interest level that reflects the weaker gas price, Sterling said.
The company said no interim dividend is proposed to be paid for the six months to June 30.
On the outlook, Sterling said the Board would conduct a full review of the Group's exploration and production assets and seek to add new projects, which will be opportunity led rather than geographically limited.
SEY.L is trading at 3.94 pence on the LSE, up 0.11 pence or 2.87%.
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